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DAX update: When will profits finally rise?

Corporate profits of German listed companies have recently fallen short of expectations. In 2024, earnings growth stagnated, weighed down by weak demand in China, high energy prices and geopolitical uncertainties. Analysts have revised their forecasts downwards and a significant increase in profits is not expected until 2026, but share prices are still at all-time highs.

Although the $DAX shows a plus over the year, valuation risks loom without sustainable earnings growth.

On the positive side, monetary policy is easing and interest rates are falling, which could provide a tailwind for German exports. The decisive factor will be whether margins recover from 2025 and profits increase in the long term.

The big question is therefore: is the current recovery of the DAX sufficient to sustain a sustained rally, or could disappointing earnings figures dampen sentiment in the coming years?

👉 You can find the full outlook for the DAX here in the Artikel

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4 Comments

Epi@Epi

As long as politics does not get going and the USD weakens, profit growth will be difficult. 🤷

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Moritz@leveragegrinding

@Epi Honestly?

It's easy to always blame everything on politics, but in my opinion it's too easy in this case.
On average, Germans are simply wealth-spoiled, effeminate grumblers who only care about their next pay rise and their rights, but are unable to think outside the box.

We are (still) a fairly well-functioning democracy, there are no innovative policies because the population is simply very well represented. We are old and lame and so is the DAX and politics 😂

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Anonym G.@Sunrise-Mantis

@leveragegrinding I think you hit the nail on the head.
The population complains, but no one thinks of taking matters into their own hands and changing things.

We are spoiled & doing very well.... but the majority just like to moan.

"It's better everywhere else" 😂
That sentence makes me want to vomit.

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Epi@Epi

@leveragegrinding Basically, I agree with you. A party that actually implements the necessary reforms in Germany must immediately expect to be voted out of office and the successor government to roll backwards. We already have the government and policies we deserve.

But the inertia of prosperity is not a typically German thing. Rather, it is typical of large nations in decline. People cling to old recipes because that was the successful mode for a long time. Germany is a nation of the 20th century. Just like the UK was a 19th century nation and China was a 10th century nation. There are so many examples in history. Germany is no exception. 🤷

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